Coinbase could buy Brazil’s largest crypto exchange, according to a report

RIO DE JANEIRO, BRAZIL – Coinbase, the largest cryptocurrency exchange in the United States, may soon acquire Mercado Bitcoin (MB), the first cryptocurrency company in Latin America to reach unicorn status, meaning a market capitalization of more than US$1 billion.

Estadão first reported the interest in MB on March 27, which claimed that negotiations between the companies began months ago. The following day, Bloomberg revealed more details about the progress of the acquisition.

HISTORIC PURCHASE

According to the website, 2TM, the exchange conglomerate’s parent company, has hired JP Morgan bank to assist in the sale process, which is already well underway.

In addition to the exchange, Coinbase would also become the owner of other companies part of the Bitcoin Market Group, including MeuBank, MB Digital, Blockchain Academy, and Portal do Bitcoin.

Although the amounts discussed in the deal were not disclosed, it is estimated that the purchase could exceed R$13 (US$2.7)billion, which would make it one of the most significant acquisitions in the history of the Brazilian market.

By comparison, that amount would be nearly double the 6.3 billion reais Itaú Unibanco paid in 2018 to acquire 49.9% of XP Investimentos.

In addition to the amounts, what share of 2TM Coinbase intends to acquire was not disclosed. It should be noted that Mercado Livre became one of the conglomerate’s shareholders earlier this year without telling its investment value.

Contacted by Bloomberg, JP Morgan, Coinbase, and Mercado Bitcoin declined to comment on the matter.

COINBASE’S PLANS IN BRAZIL

Coinbase, the first cryptocurrency company to list on a U.S. exchange, had previously signaled increased interest in the Brazilian market. Marcello Azambuja, the company’s chief engineering and technology officer, said the country is a vital expansion center and announced several open positions for Brazilians.

“Brazil is a key technology hub for Coinbase’s global expansion, so we need a global engineering team that reflects our goal of increasing economic freedom worldwide. Cryptocurrencies are a great way to access capital efficiently and transparently. We believe some of the best engineering talents can be found in Latin America, and we look forward to growing in Brazil.”

As one of the countries with the highest cryptocurrency trading volumes, Brazil has attracted interest from major international companies in the sector.

Binance, which already dominates the domestic crypto scene, also has plans to expand in the country. Its CEO, Changpeng Zhao, recently met with São Paulo Governor João Doria and Rio de Janeiro Mayor Eduardo Paes.

LatAm Markets: Live Signals → — real-time movers, turnover leaders and FX across Latin America.